Complete Guide To Choosing The Best Open Electricity Market (OEM) Plan For Your Home

You might have heard that starting next month (November), residential households islandwide will be able to pick from a variety of electricity retailers to buy electricity from. For most of us, this can be a little unnerving and confusing, since have been buying power from just one company – SP Group. What does it mean to buy electricity from a company other than SP Group? Will electricity reliability be affected? Is it compulsory to switch?

With the impending launch of the Open Electricity Market island-wide, Singapore households will be able to choose from 12 electricity retailers, each offering multiple plans.

Here is what you need to know about the Open Electricity Market, and an overview of the choices available so you can make the best choice for your household’s needs.

5-Minute Explanation: How Electricity Is Produced And Sold In Singapore

In order to understand what an electricity retailer is, we first need to understand the how electricity is produced and sold in Singapore. The Singapore energy market has always been an eco-system made up of multiple players.

Everything starts with the electricity produced by power plants, which are owned and operated by power generation companies. Every half an hour, these power generation companies bid for contracts to generate and sell specified quantities of power on the wholesale electricity market. Based on forecasted demand and storage capabilities, SP Group, who was previously the sole buyer of electricity in Singapore for residential households, then awards contracts to produce power based on a least-cost solution.

The electricity generated is then transmitted from the power plants and distributed across the island on the national power grid, which is also operated by SP Group.

In other words, SP Group buys electricity in bulk from the power generation companies on behalf of Singapore households, is responsible for the infrastructure for reliable power delivery island-wide, and bills households for the electricity consumed.

To ensure consumers are protected, prices that Singapore households pay is based on the tariff set by the Energy Market Authority (EMA), with the aim of being as low as possible while allowing SP Group to cover operational costs.

The tariff consists of two parts: 1) fuel cost and 2) non-fuel cost. The fuel component is based on natural gas prices in the preceding quarter, while the non-fuel component covers the cost of running the electrical infrastructure and support services like meter reading.

In effect, the tariff system insulates Singaporeans, to some extent, from the electricity production and purchase process, and from near-term price fluctuations due to the global oil market, since 95% of Singapore’s electricity supply is generated using imported natural gas.

What Is The Open Electricity Market (OEM)?

The Open Electricity Market (OEM) is part of EMA’s effort to liberalise the electricity market, allowing residential households in Singapore to buy electricity from retailers other than SP Group.

Think of this as similar to how different telecommunication companies in Singapore such as SingTel, M1, Starhub and Circles.Life offer different price plans in order to attract different kinds of customers.

On 1 April 2018, OEM was soft launched, allowing more than 100,000 Jurong households to choose their preferred electricity retailer and plan. Consumers in the rest of Singapore will enjoy the same choice when OEM rolls out nationwide in phases from 1 November 2018. This will involve 1.3 million mostly household accounts.

To be clear, SP Group continues to operate the national power grid, so you can be assured of the same reliable power that you come to expect living in a Singapore. For those who choose not to do anything, SP Power will continue to sell you electricity at the regulated tariff.

Here is the current list of electricity retailers that you’ll be able to buy their electricity from:

Best Electricity Supply

ES Power

Geneco by Seraya Energy

iSwitch

Keppel Electric

Ohm Energy

PacificLight Energy

Sembcorp Power

Senoko Energy Supply

Singtel (OEM section not yet available)

Tuas Power Supply

Union Power

Benefits Of The Open Electricity Market

The opening up of the electricity market for Singapore households come with a number of benefits.

# 1 More Choices For Electricity Plans

Compared to paying a fixed, quarterly tariff rate which is what SP Group offers, retailers allow you to choose from three types of electricity plans. Different plans give Singaporeans choices on how they wish to buy electricity and who they wish to buy it from. They have the potential of large cost savings for households who choose an appropriate plan based on their consumption habits.

# 2 Competition Leading To Innovation And Better Prices

Competition among retailers that essentially sell the same product (electricity) means that companies need to provide great service at great prices. Beyond price, retailers are also competing to value-add to their customers.

For example, PacificLight is giving customers free 12-month home insurance from Etiqa when they sign up for a 24-month home electricity plan. Other retailers are offering free months of electricity, referral cashback, and other promotional rewards.

As companies strive to differentiate themselves, we can look forward to even more offerings and perks, and to choose the one that makes the most financial sense for us.

Read Also: 3 Types of Insurance Every Homeowner Needs To Know About For Protecting Their Home

# 3 More Awareness Of Energy Consumption

The introduction of OEM and the large numbers of retailers and plans should make Singaporeans more aware of the electricity market in Singapore and to take stock of their own consumption patterns.

Being more conscious about when we use electricity, how much power our appliances are using, and areas of wastage will hopefully lead to more considered electricity use, saving both money and natural resources over time.

When Will You Be Able To Make The Switch?

The nationwide roll-out of the Open Electricity Market will be conducted in phases, based on location.

Overview Of Types Of Price Plans Offered By OEM Retailers

Before we compare the different standard price plans offered by each retailer, it’s important to first understand how each works. In general, retailers can offer any of these three types of plans: 1) Discount Off Regulated Tariff, 2) Fixed Price and 3) Peak And Off-Peak.

Here is how each type of electricity plan works.

1) DiscountOff RegulatedTariff plans offer a discount off the prevailing regulated tariff price, which is revised every quarter.

2) FixedPrice plans mean you pay a fixed rate throughout the duration of your contract. While the rate is not subjected to quarterly fluctuations based on the tariff, it may be higher or lower than the tariff over time.

3) PeakandOff–Peak plans charge different prices for electricity usage depending on the time of day. If your household’s electricity usage is skewed towards mainly off-peak hours, Peak and Off-Peak plans could potentially result in the greatest savings.

Best Discount Off Regulated Tariff Plans Across OEM Retailers

* All prices are accurate at the time of writing and might be subject to change. Please contact individual retailers for the most updated pricing.

There are currently a total of 20 Discount Off Regulated Tariff Plans offered by the various retailers. Here are the various plans compared:

Retailer

Name Of Plan

Price

Contract Duration

Best Electricity Supply

BEST Home Saver 12 months

18% off regulated tariff

12 months

BEST Home Saver 24 months

23% off regulated tariff

24 months

Geneco by Seraya Energy

Give Us A Try

23.80% off regulated tariff

6 months

Get It Less 12

19.00% off regulated tariff

12 months

Get It Less 24

21.00% off regulated tariff

24 months

iSwitch

Super Saver Discount 1 Year

19.00% off regulated tariff

12 months

Super Saver Discount 2 Years

20.00% off regulated tariff

24 months

iSwitch2Green

18.00% off regulated tariff

12 months

Keppel Electric

DOT 3

21.00% off regulated tariff

24 months

DOT 24

21.00% off regulated tariff

24 months

Ohm Energy

Ohm Discount (6 Months)

20.00% off regulated tariff

6 months

Ohm Discount (12 Months)

22.00% off regulated tariff

12 months

PacificLight

Confirm Save

18.00% off regulated tariff

24 months

Sembcorp Power

12M Discount Off Tariff Home

20.00% off regulated tariff

12 months

24M Discount Off Tariff Home

23.50% off regulated tariff

24 months

Senoko Energy

LifeSave12

14.50% off regulated tariff

12 months

LifeSave24

17.25% off regulated tariff

24 months

Tuas Power Supply

PowerDO 6

10.00% off regulated tariff

6 months

PowerDO 24

16.00% off regulated tariff

24 months

PowerDO (SG 53)

53.00% off regulated tariff for first 6 months, 10.00% off regulated tariff subsequently

24 months

Note that ES Power, Singtel and Union Power have not released their plans yet.

As you can see, Geneco’s Give Us A Try (6 months) plan offers the highest percentage discount off the regulated tariff at 23.80% (as of 30 September 2018). However, the short contract duration can be seen as a double-edged sword.

On one hand, it frees you up to choose another cheaper plan or even switch to another retailer after 6 months. On the flip side, the discount being offered may not be the same by the time you need to re-contract.

If you want to lock in the percentage of discount off the tariff price, the next best deal (as of 30 September 2018) is Sembcorp Power’s 24M Discount Off Tariff Home plan which provides a very attractive 23.50% discount off the regulated tariff over a period of 24 months.

Best Fixed Price Plans Across OEM Retailers

As of 30 September 2018, there are 20 Fixed Price plans available, which you can compare below:

Retailer

Name Of Plan

Price

Contract Duration

Best Electricity Supply

BEST Home Fixed 6 months

16.28 cents/kWh

6 months

BEST Home Fixed 12 months

17.50 cents/kWh

12 months

BEST Home Fixed 24 months

16.38 cents/kWh

24 months

Geneco by Seraya Energy

Get It Fixed 12

17.80 cents/kWh

12 months

Get It Fixed 24

16.20 cents/kWh

24 months

iSwitch

Chope’ The Rate 1 Year

17.80 cents/kWh

12 months

Chope’ The Rate 2 Years

17.50 cents/kWh

24 months

Keppel Electric

FIXED 6

17.07 cents/kWh

6 months

FIXED 12

16.80 cents/kWh

12 months

FIXED 24

16.50 cents/kWh

24 months

Ohm Energy

Fixed Ohm (6 Months)

18.15 cents/kWh

6 months

Fixed Ohm (12 Months)

17.95 cents/kWh

12 months

Fixed Ohm (24 Months)

16.95 cents/kWh

24 months

PacificLight

Stick To It

17.78 cents/kWh

24 months

Sembcorp Power

24M Fixed Price Home

16.50 cents/kWh

24 months

12M Fixed Price Home

16.80 cents/kWh

12 months

Senoko Energy

LifePower24 Online Promo

17.18 cents/kWh

24 months

LifePower12

17.99 cents/kWh

12 months

Tuas Power Supply

PowerFIX 24

18.80 cents/kWh

24 months

PowerFIX 36

16.80 cents/kWh

36 months

The absolute cheapest rate (as of 30 September 2018), would be Geneco’s Get It Fixed 24 plan, which is at 15.99 cents/kWh for a 24-month contract.

For those who prefer a shorter tenure, the best 6-month Fixed Price plan (as of 30 September 2018) is Best Electricity Supply’s BEST Home Fixed 6 months, which offers a rate of 16.28 cents/kWh.

Best OEM Peak And Off-Peak Plan Across OEM Retailers

Comparing between the 6 Peak and Off-Peak plans is a little trickier, since not all vendors have the same definition of the “peak period”. Thus, there isn’t a definitive way to say which is the “best” plan.

Retailer

Name Of Plan

Peak Rate

Peak Period

Off-Peak Rate

Contract Duration

Geneco by Seraya Energy

Good Night

5.00% off regulated tariff

6am – 12 midnight

53.00% off regulated tariff

24 months

Keppel Electric

Knight

18.80 cents/kWh

7am – 11pm

15.38 cents/kWh

24 months

PacificLight Energy

Save While Sleeping ($)

18.07 cents/kWh

7am – 11pm

16.67 cents/kWh

24 months

Save While Sleeping (%)

23.00% off regulated tariff

7am – 11pm

13.00% off regulated tariff

24 months

Sembcorp Power

12M Sunshine Plan

23.65 cents/kWh

7pm to 7am

20.00 cents/kWh

12 months

Tuas Power Supply

PowerWAVE 24

20.20 cents/kWh

7am – 7pm, Weekends and PH

19.00 cents/kWh

24 months

Choosing The Best OEM Retailer And Plan For Your Household

Now that you understand how the various plans work, you might wonder which one suits you best. Here are four steps you can take to answer that question.

Step 1: Examine Your Household Electricity Bill

The first thing you can do is to gather your past electricity bills. Since electricity consumption is generally cyclical, doing so will help you have a more accurate picture of your consumption patterns.

When going through your household electricity bills, note the highest electricity usage in a month, and then calculate the average monthly electricity consumed.

You can use the following table to help with log your results.

Month

Electricity Consumed
(kWh)

Electricity Bill ($)

October 2017

November 2017

December 2017

January 2018

February 2018

March 2018

April 2018

May 2018

June 2018

July 2018

August 2018

September 2018

12-month Average:

Step 2: Calculate Expected Costs

To help you along, you can also refer to information on historical tariff rates and compare against the rates on offer.

The Current Regulated Tariff is 24.13 cents/kWh (effective from 1 October to 31 December 2018)

Highest tariff in past 24 months: 24.13 cents/kWh

Lowest tariff in past 24 months: 20.20 cents/kWh

Average tariff in past 24 months: 21.76 cents/kWh

Take your average monthly electricity consumption (derived in Step 1) and multiply that with rates given by the Fixed Price plan that you are considering. This is how much you can expect to pay when you’re on a Fixed Price plan.

Adding a column to your original table, you can see if you will be making savings (and by how much).

Month

Electricity Consumed
(kWh)

Electricity Bill ($)

Expected Fixed Rate Bill

October 2017

November 2017

December 2017

January 2018

February 2018

March 2018

April 2018

May 2018

June 2018

June 2018

August 2018

September 2018

12-month Average:

To know how much you’ll be paying if you are on a Discount Off Regulated Tariff plan, look at what you are currently paying for your electricity (which is at the regulated tariff) and factor in the discount percentage given in the plan.

Adding a column to your original table, you can see how much savings in dollar terms you would have made.

Using the results of both Fixed Price and Discount Off Regulated Tariff tables, you can see which type of plan will result in the greatest savings for your household.

You could consider a Peak And Off-Peak plan if you find that your electricity usage pattern falls within the Off-Peak timings set by the retailers. For example, if you are a heavy user of electricity during the off-peak hours, then a Peak And Off-Peak plan may make sense.

If you’re worried about making the “wrong” decision, then the simple sure-win proposition is to go for a Discount Off Regulated Tariff plan. By switching to a retailer with such a plan, you will enjoy immediate savings compared to sticking with SP Group.

Step 3: Read The Fine Print

After you identified what seems like the best plan for you, you can visit the retailer’s website and download the Fact Sheet for the plan (or plans) that you have in mind. This Fact Sheet will summarise the key contractual terms and conditions of the price plan, such as contract duration, payment terms, security deposit, early termination charges and auto-renewal clauses.

Another document to look out for is the Consumer Advisory which outlines the important things that you should be aware of before signing up with a retailer. Retailers are required to obtain your acknowledgement before contracting you as their customer. For most of the plans, there is usually a security deposit required, and there are early termination and late payment fees you need to be aware of.

As with all contracts, read the fine print carefully and ask the retailer to explain any of the terms and conditions that you are unsure of.

Step 4: Look For Discounts And Promotions

In a bid to attract new customers, retailers have been offering referral discounts and other perks. Some of these are limited-time or limited-quantity offers, and they should not be the driving factor for deciding to sign with a particular retailer.

Ultimately, choosing your electricity retailer and plan is an important decision that you should make based on your needs.

Read Also: Choosing The Most Suitable Home Loan In Singapore

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